Qatar's energy company has decided to temporarily suspend shipping through the Bab el-Mandeb Strait due to the increased risks in the vital waterway caused by US airstrikes on Houthi targets in Yemen, according to reports from Bloomberg and Reuters.
A reliable source told Reuters that Qatar Energy suspended shipping through the Red Sea to seek security advice but clarified that its production of liquefied natural gas has not stopped.
If the passage through the Red Sea remains unsafe, Qatar's energy shipments will be redirected through the Ras Al Rukn Al Salaam route.
Ship tracking data compiled by Bloomberg shows that at least five LNG carriers managed by Qatar have halted while en route to the critical waterway at the southern end of the Red Sea.
Three vessels stopped off the coast of Oman, one in the Red Sea, and another in the Mediterranean near the Suez Canal.
The affected vessels include Al Gharrafa, Al Kharsaah, and Al Numan, which were supposed to head towards the Suez Canal but stopped off the coast of Oman on January 14.
The Al Rakiyat stopped on January 13 on its way through the Red Sea, according to Reuters.
Bloomberg reports that the extended disruption of supplies from Europe's second-largest supplier of liquefied natural gas adds to risks at a time when Europe faces a severe winter season. However, it noted that "the halt will not impact European markets in the short term."
Europe maintains a healthy supply and is experiencing weak industrial demand. European benchmark gas prices fell by as much as 3.7% on Monday, according to Bloomberg.
Data from the London Stock Exchange Group shows that Qatar shipped over 75 million tons of fuel in 2023, with 14 million tons going to buyers in Europe and 56.4 million tons to Asia.
While many LNG carriers altered their routes since last month, some continued to sail alongside Yemen through the Red Sea and the Suez Canal.
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